The daily business briefing: February 6, 2018

The Dow's record plunge fuels a global stock sell-off, SpaceX prepares its massive Falcon Heavy rocket for launch, and more

The SpaceX Falcon Heavy rocket on the launch pad
(Image credit: Joe Raedle/Getty Images)

1. Dow's record dive fuels global stock sell-off

The Dow Jones Industrial Average made its biggest single-day point drop ever on Monday, falling by 1,176 points, or 4.6 percent, and fueling a similar sell-off overseas. U.S. stock futures were swinging wildly early Tuesday, plunging before climbing briefly into positive territory, then falling sharply again in a battle to stabilize. The S&P 500 dropped by 4.1 percent and the Nasdaq Composite lost 3.8 percent on Monday, erasing their 2018 gains. The sell-off started Friday after strong wage and hiring data pointed toward quickening inflation that could prompt the Federal Reserve to raise interest rates faster. Analysts note that economic fundamentals remain strong. Many felt a correction was overdue. "Last month the market went up by 6 percent," said Donald Selkin of Newbridge Securities Corp. "That's unsustainable."

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Harold Maass, The Week US

Harold Maass is a contributing editor at The Week. He has been writing for The Week since the 2001 debut of the U.S. print edition and served as editor of TheWeek.com when it launched in 2008. Harold started his career as a newspaper reporter in South Florida and Haiti. He has previously worked for a variety of news outlets, including The Miami Herald, ABC News and Fox News, and for several years wrote a daily roundup of financial news for The Week and Yahoo Finance.